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8h ago

Pentagon Bans Chinese Nationals From DoD Cloud Work, Orders Microsoft Audit

After barring Chinese nationals from Defense cloud work, the Pentagon ordered an outside audit of Microsoft’s Digital Escorts program.

U.S. Defense Secretary Pete Hegseth at the Oval Office of the White House in Washington, D.C., U.S., August 18, 2025. REUTERS/Kevin Lamarque/ File Photo
Department of Defense Secretary Pete Hegseth said "the use of Chinese nationals to service Department of Defense cloud environments, it's over." (KEVIN WOLF/AP)
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Overview

  • Defense Secretary Pete Hegseth announced the prohibition in a video statement, calling prior reliance on China-based engineers an unacceptable risk.
  • The Pentagon issued a formal letter of concern to Microsoft and mandated a third-party review of the program’s code and submissions by Chinese nationals, with Microsoft expected to cover the audit costs.
  • DoD experts were tasked with a separate internal investigation into the Digital Escorts setup and the Chinese Microsoft employees who participated.
  • All Defense software vendors were directed to identify and terminate any Chinese involvement in DoD systems.
  • The actions follow a ProPublica report detailing a decade-long model where U.S. “digital escorts” with limited technical expertise relayed instructions from China-based engineers, a practice Pentagon officials said they were not aware of.